Canadians are opening Do-It-Yourself (DIY) accounts in unprecedented numbers, but with increased market volatility the Investment Industry Regulatory Organization of Canada (IIROC) is cautioning investors to take the time necessary to make more informed decisions.
According to research firm Investor Economics, Canadians opened more than 2.3 million gross new accounts in Canada between January and December 2020 – up from 846,000 in all of 2019.
Since the start of the pandemic, there has also been a significant surge in inquiries and complaints. Between March 2020 and January 2021, DIY investors' inquiries and complaints are up 270 per cent compared to the same period in 2019.
In addition, IIROC has reissued its investor bulletin, “Is a DIY account right for me?”
Urges investors to be cautious
IIROC is urging investors to be careful about where they get their information and cautioning them not to misinterpret investment research from unknown sources.
DIY investing is appropriate for those who have ample knowledge and information – and who are comfortable making their own decisions without financial advice, said IIROC.
Capital markets are affected by numerous factors that may result in greater volatility at times – leading to gains as well as losses. Last week, IIROC together with the Canadian Securities Administrators, also issued a joint statement urging investors to be careful about sources of information they use when making investment decisions.
